Buy-to-let advice for individual and limited-company landlords.
Buy to let is a different game. Stress tests, rental income calculations, limited company structures, treating it like a residential mortgage costs landlords real money.
What lenders actually look at.
- Rental income vs. mortgage payment
Most lenders want rental income to cover 125–145% of the mortgage at a stress-tested rate (usually 5.5–7%). The numbers need to work conservatively, not optimistically.
- Your personal income
Some lenders set a minimum personal income requirement, while others focus mainly on rental cover, experience and the applicant's overall profile.
- Property type and location
Standard buy to let is one thing. HMOs, holiday lets, flats above shops, each has different lenders and different criteria.
- Your overall portfolio
Four or more properties triggers portfolio landlord status at most lenders, meaning more detailed stress-testing across your entire portfolio, rather than the new property alone.
Structure matters more than most people realise.
Personal name vs. limited company. Section 24 restricts the mortgage interest tax relief individual landlords can claim, you now receive only a 20% basic rate tax credit rather than deducting interest in full. Limited companies can still deduct mortgage interest as a business expense. Whether incorporating is worthwhile depends on your wider tax position and carries its own costs, so it is an area for specialist tax advice. We'll help you weigh up the mortgage side.
Regulated vs. unregulated. Most buy to let mortgages are unregulated business transactions. The exception is Consumer Buy to Let, if you're letting to an immediate family member, or inherited a property, different rules apply. We'll confirm which category you're in.
Specialist buy to let we handle
HMOs, Higher yields, higher complexity. Specialist lenders only, with deposits typically 25% or more.
Holiday lets, From April 2025 the Furnished Holiday Let tax regime was abolished. Holiday lets now face the same Section 24 restrictions as standard buy to let. The specialist mortgage market remains, but the tax picture has changed significantly.
Limited company buy to let, Slightly higher rates typically, but full mortgage interest deductibility against corporation tax makes it the preferred post-Section 24 structure for most portfolio investors.
Common questions.
- How much deposit do I need for a buy-to-let?
Usually 25% of the property value, occasionally 20% with a smaller pool of lenders. The best rates typically start at around 40% deposit.
- Is buy-to-let lending based on my salary?
Mostly no. Lenders look first at the expected rental income, which typically needs to cover 125% to 145% of the mortgage payment under a stressed interest rate. Your personal income still matters for minimum thresholds and background affordability.
- Should I buy in my own name or through a limited company?
It depends on your tax band, how many properties you plan to hold, and your long-term plans. Limited company buy-to-let can be more tax-efficient for higher-rate taxpayers, but rates and costs are usually higher. We talk through the mortgage side; for the tax side you should also speak to an accountant.
- Can I get a buy-to-let mortgage as a first-time landlord?
Yes. Plenty of lenders accept first-time landlords, though some prefer you to own your own home first. It narrows the pool rather than closing it.
Your property may be repossessed if you do not keep up repayments on your mortgage.
Ready to invest?
Book a free chat and let's make sure the structure and the deal are right for your goals.
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